A study of Cummins India Limited

Disclaimer: This blog is strictly meant for educational purpose.It is not an attempt at marketing or to violate any copyright.

About the company:

Cummins' presence in India stems from a joint venture incorporated in 1962. Ground was broken for a factory in Pune the same year and the plant began manufacturing engines at the beginning of 1964. In 1997, Cummins Inc. increased its stake to 51 percent with the rest being traded on the Bombay Stock Exchange. With this the joint venture became a consolidated subsidiary of Cummins Inc. and continues till date as Cummins India Limited. By 2004, Cummins had formed multiple legal entities in India including joint ventures.

Today, eight legal entities of the Group represent all of the Cummins global business units. Having expanded its business across markets and geographies, the Group spans 200 locations in the country and employs close to 14,000 individuals. Cummins in India reported combined sales of approximately Rs. 10,500 crores in 2011.

. Part of the US $ 10.8 billion Cummins Inc., Cummins in India is a Group of nine legal entities across 200 locations in the country with a combined  turnover of approximately Rs. 6,300 crores and employing over 11,000 individuals.

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Products:

Engine Value Packages (60-2700 HP)

Auto, Construction, Mining,
Compressors, Pumps, Marine,
Rail, Oil & Gas, Defense
B series
ISLe 
C series
B Gas

Power Generation

Gensets (15-2000 kVA), Energy
Management, Captive Power
Plants, Alternators

MARKON

2 pole low voltage alternators in the range 0.6 - 7.5 KVA

STAMFORD

2, 4 and 6 - pole alternators in the range 7.5 - 2200 KVA

AVK

4 to 18 pole low, medium and high voltage ac generators in the range 600 - 20,000 KVA

Components & Consumables

Filtration, Turbochargers,
Emission Solutions, Lubricants

Services

Engines, Gensets, IT/ITES,
R&D, Sourcing, Finance, HR
Lubricants
Car Care
Filters

 KPIT Cummins INfosystems Limited

 We are a leading technology solutions partner for global Manufacturing corporations with special focus on Automotive, Energy & Utilities, Industrial Equipments, and Semiconductor industries. OurInformation Technology solutions help our customers run their businesses more efficiently. OurProduct Engineering solutions enable our customers to build products that are energy efficient, safer and yield more comfort for their customer

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Markets:

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Customers:

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Geographical spread of the company:

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Vision:

“Making people's lives better by unleashing the Power of Cummins "

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 Mission:

• Motivating people to act like owners working together.
• Exceeding customer expectations by always being first to market with the best  products.
• Partnering with our customers to make sure that they succeed.
• Demanding that everything we do leads to a cleaner, healthier, safer environment.
• Creating wealth for all stakeholders. 

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Values:

• Integrity. Strive to do what is right and do what we say we will do.
• Innovation. Apply the creative ingenuity necessary to make us better, faster, first.
• Delivering Superior Results. Exceed expectations, consistently.
• Corporate Responsibility. Serve and improve the communities in which we live.
• Diversity. Embrace the diverse perspectives of all people and honor with both dignity and respect.
• Global Involvement. Seek a world view and act without boundaries

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Goals:

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Srategy:

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 Organizational Structure:

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No. of employees:

Cummins India Ltd has about 3000 employees at various locations.
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Unique  Work Systems – Ex. ISO, CMM certifications:

Six Sigma

– Now in its 11th year

– 335 projects closed

– Rs. 61.89 crores in savings

– Seven projects received the Cummins Inc. Chairman‟s Quality Award

– Leadership Development Tool

TRIMS

– Rs. 12.4 crores in bottom line savings and Rs. 39.7 crores in avoidance savings

ACE II

– Rs. 53.8 crores in savings

ISO 14001 and OHSAS 18001 certifications for all engine manufacturing plants in Pune


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Customer policies:

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HRM - Employee management policies:

Right Environment for Success

•  Established through the Vision, Mission and Values
•  Centralized hiring and Onboarding
•  Representation at College Hires
•  Diversity
•  One Cummins - leveraging synergies
•  Leadership and Employee development
•  Performance Ethic
•  Improved Code of Business Conduct governance process
•  Increased focus on Corporate Responsibility

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Corporate governance code:

Far higher focus in this area

•  Prioritized higher education, energy/environment and infrastructure development
•  Cummins College of Engineering for Women - Signature project
•  Every Employee Every Community
•  Environmental Challenge
•  Cummins Scholarship Program

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Organizational Culture – Employee Satisfaction Surveys:

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Awards, distinctions that the company has earned:

1)    Cummins conferred with the CII National Award for “Excellence in Energy Management        
        2010”

2)    Cummins wins again the “Voice of the Customer” Awards from Frost & Sullivan in Five  

        Categories

3)    Anant Talaulicar awarded President's Award 2011 by SIAM

4)    Best Quality Performance‟ Award by Atlas Copco

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Current Top management team:

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Target:

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SWOT analysis of company:

Strengths:

• Values based performance ethic
• Market leadership
• Long term customer and supplier partnerships
• Global technology with localization capabilities
• Customer support capabilities
• Sustaining business strategy

Weaknesses:

• Cautious demand outlook short term
• Limitations in transmission network capacity leading to pockets of acute power shortages
• Targeted at low kVA export market

Opportunities:

• Focused Last Mile Six Sigma Projects
• Open up newer markets for NG products, especially in south and east
• Generator Set Plant at SEZ, Megasite in Phaltan

Threats:

• Coal shortages  for power gen sector – power deficit expected to continue
• Non-coal mining sector has seen moderation  in growth and the outlook remains cautious in short term
• Diesel price deregulation in near future is likely to affect the sales of diesel generator sets

References:

• http://www.cumminsindia.com/faq.html
• http://www.cumminsindia.com/documents/presentations/Presentation%20for%20Analyst%20Meet.pdf
• http://www.cumminsindia.com/documents/presentations/Transcript%20-%20Q4,%202012.pdf
• http://business-standard.com/content/research_pdf/kkc1_180512.pdf
• http://www.cumminsindia.com/documents/annual_reports/Cummins%20Full%20AR%2011-12.pdf
• http://www.moneycontrol.com/india/stockpricequote/engines/cumminsindia/CI02

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